---
kind: "range"
citation: "38 C.F.R. §§ 21.5050–21.5067"
title: "38"
from: "21.5050"
to: "21.5067"
count: 11
url: "https://uscodex.org/cfr/38/21.5050..21.5067"
---

# §21.5050. Application requirements for participation.

- (a) An individual, who is otherwise eligible to become a participant, must apply to the Service Department under which he or she serves upon forms prescribed by the Service Department and/or Secretary of Defense.
- (b) No application to participate may be made before entry upon active duty.
- (c) Each application must be submitted in time to permit the Service Department to make the required deduction from the individual's military pay for at least 1 month before the applicant's discharge or release from active duty.

# §21.5052. Contribution requirements.

- (a) **Minimum period of participation.** Each individual who agrees to participate must do so for a minimum period of 12 consecutive months, unless the participant:
  - (1) Is allowed to disenroll for hardship reasons;
  - (2) Is permitted to suspend participation for hardship reasons;
  - (3) Is discharged or released from active duty;
  - (4) Otherwise ceases to be legally eligible to participate; or
  - (5) Elects to make a lump-sum contribution which, when taken together with his or her other contributions, equals the equivalent of at least 12 months' participation.
- (b) **Amount of monthly contribution.** The individual shall specify the amount of his or her contribution to the fund.
  - (1) The contribution shall be at least $25 per month but not more than $100 per month.
  - (2) The contribution shall be evenly divided by five. See [§ 21.5292](/cfr/38/21.5292.md) for contributions made during the 1-year pilot program.
- (c) **Amount of total contribution.** An individual may contribute for the number of months required to reach a total contribution of $2,700.
- (d) **Changing the monthly contribution.** An individual may increase or decrease the amount of the monthly contribution, but may not do so more than once a month.
- (e) **Prohibition against contributing.** An individual may not make contributions to the fund after the date of his or her discharge. The VA does not consider the return of an unnegotiated refund check to be a contribution. A person who returns a refund check remains continuously eligible for benefits.
- (f) **Lump-sum contribution.** After September 30, 1980 an individual may make a lump-sum contribution or contributions in place of or in addition to monthly contributions.
  - (1) **A lump-sum contribution—**
    - (i) Must be evenly divisible by five,
    - (ii) Must, when taken together with any monthly contributions the participant may have made or may agree to make, equal or exceed 12 months' participation, and
    - (iii) Must not exceed $2,700 when taken together with any monthly contributions the participant may have made or may agree to make.
  - (2) The Department of Veterans Affairs will consider the lump-sum contributions to have been made by monthly deductions from the participant's military pay at the rate of $100 per month unless the participant specifies a different rate which must be
    - (i) No lower than $25 per month,
    - (ii) No higher than $100 per month, and
    - (iii) **Evenly divisible by five.**
  - (3) If otherwise eligible to make contributions, a participant:
    - (i) **May make a lump-sum contribution to cover any period of his or her active duty.** This may entail a retroactive period, including one which—
      - (A) Begins after December 31, 1976, and before October 1, 1980, or
      - (B) Although made after October 27, 1986, includes all or part of the period beginning on July 1, 1985, and ending on October 27, 1986.
    - (ii) May make a lump-sum contribution which has the effect of increasing the amount of a monthly contribution the participant made previously, but the payment cannot have the effect of increasing the monthly contribution to an amount greater than $100;
    - (iii) May make a lump-sum payment to cover a period for which he or she previously obtained a refund;
    - (iv) May not make a lump-sum payment to cover a period during which the participant was not on active duty or will not be on active duty.
  - (4) A participant may make as many lump-sum contributions as he or she desires, but he or she may not make more than one lump-sum contribution per month.

# §21.5053. Restoration of contributions (Persian Gulf War).

- (a) **Restoration of contributions when no entitlement is charged.** If the provisions of [§ 21.5072(i)](/cfr/38/21.5072.md?p=i) require that a veteran's entitlement not be charged for a payment or payments he or she received, the amount of the veteran's contributions which were included in the payment or payments will be restored to the fund by the Department of Defense.
- (b) **Restored contributions are treated like other contributions.** VA will treat contributions which have been restored under [paragraph (a)](#a) of this section as though the veterans had contributed them for all purposes including—
  - (1) Computing the veteran's monthly rates and benefit payments under [§ 21.5138](/cfr/38/21.5138.md), and
  - (2) Determining any refund which may become due the veteran under §§ [21.5064](/cfr/38/21.5064.md) and [21.5065](/cfr/38/21.5065.md).

# §21.5054. Dates of participation.

- (a) **General.** An individual may participate after December 31, 1976. An individual was not eligible for benefits before July 1, 1977, unless discharged after January 1, 1977, for a service-connected condition. The first date on which an individual on active duty enrolled in a course, courses or a program of education leading to a secondary school diploma or equivalency certificate may receive benefits is subject to the eligibility requirements of § [21.5040(f)(4)](/cfr/38/21.5040.md?p=f-4) and [(5)](/cfr/38/21.5040.md?p=f-5).
- (b) **Termination of right to begin participation.**
  - (1) Except as provided in [paragraph (b)(3)](#b-3) of this section, no individual on active duty in the Armed Forces may initially enroll after June 30, 1985.
  - (2) **An initial enrollment occurs when a serviceperson who has never contributed to the fund—**
    - (i) First makes a lump-sum payment to the fund, or
    - (ii) **First authorizes an allotment to VA for deposit in the fund.** See [32 CFR 59.3(b)(10)](/cfr/32/59.3.md?p=b-10).
  - (3) Notwithstanding the provisions of [paragraph (b)(1)](#b-1) of this section, any individual on active duty in the Armed Forces who was eligible to enroll on June 30, 1985, may enroll at any time during the period beginning on October 28, 1986, and ending on March 31, 1987.

# §21.5058. Resumption of participation.

- (a) **General.** An eligible individual, who remains otherwise eligible, may resume active contribution to the fund, if he or she has:
  - (1) Voluntarily elected to suspend following completion of minimum participation;
  - (2) Suspended at any time for reasons of hardship; or
  - (3) **Received a discharge or release from active duty after participation and reenlisted.**
- (b) **Disenrollment in order to participate in other educational programs.** A person who elects to disenroll in order to receive educational assistance allowance under 38 U.S.C. chapter 34 or to receive an officer adjustment benefit payable under [sec. 207](/cfr/38/207.md), Pub. L. 101-366, 104 Stat. 442, may not reenroll if he or she has negotiated a check under the provisions of law governing the program elected in lieu of the Post-Vietnam Era Veterans' Educational Assistance Program. A person who elects to disenroll in order to receive educational assistance under the Montgomery GI Bill—Active Duty, as provided in [§ 21.7045](/cfr/38/21.7045.md), may not reenroll.
- (c) **Reenrollment permitted following some disenrollments.**
  - (1) Except as provided in [paragraph (b)](#b) of this section, a person who has disenrolled may reenroll, but will have to qualify again for minimum participation as described in [§ 21.5052(a)](/cfr/38/21.5052.md?p=a).
  - (2) If a person does reenroll, he or she may “repurchase” entitlement by tendering previously refunded contributions which he or she received upon disenrollment, subject to the conditions of [§ 21.5052(f)](/cfr/38/21.5052.md?p=f).

# §21.5060. Disenrollment.

- (a) **Voluntary disenrollment.**
  - (1) An individual may disenroll at anytime after the initial 12 months of participation.
  - (2) At any time within the initial 12 months of participation, an individual may elect to disenroll for reasons of personal hardship only.
- (b) **Nonvoluntary disenrollment.** The Department of Veterans Affairs shall disenroll automatically an individual who meets any of the following sets of conditions:
  - (1) The individual is discharged or released from his or her initial obligated period of active service and:
    - (i) The discharge or release is under dishonorable conditions, or
    - (ii) A statutory bar to benefits administered by the Department of Veterans Affairs exists for the individual;
  - (2) The individual participated only after completion of the initial or subsequent period of active service; is discharged or released and:
    - (i) The discharge or release is under dishonorable conditions, or
    - (ii) A statutory bar to benefits exists for the individual; or
  - (3) The individual has not utilized all of his or her entitlement to benefits within the 10-year period stated in [§ 21.5041](/cfr/38/21.5041.md), and at the end of one year thereafter has not filed a claim for educational assistance allowance as provided in [§ 21.5030(c)](/cfr/38/21.5030.md?p=c).

# §21.5062. Date of disenrollment.


An individual will be disenrolled effective:

- (a) The date the Department of Veterans Affairs or the Service Department determines he or she has ceased to be legally entitled to participate; or
- (b) The date the individual negotiates the check which represents a refund of his or her remaining contributions to the fund, whichever is earlier.

# §21.5064. Refund upon disenrollment.

- (a) **General.** A disenrolled individual will be refunded all contributions made by him or her to the fund. He or she will be ineligible to receive benefits under §§ [21.5130](/cfr/38/21.5130.md) and [21.5138](/cfr/38/21.5138.md), unless the individual reenrolls as a participant and agrees to participate in a new period of 12 consecutive months as provided in [§ 21.5058](/cfr/38/21.5058.md). The amount of the contributions refunded upon disenrollment shall be limited to the amount of his or her contributions not utilized to receive benefits as of the date of disenrollment, less any outstanding debts resulting from overpayments of educational assistance allowance.
- (b) **Effective date of refund.** The date upon which the refund of contributions, if any, will be made shall be determined as follows:
  - (1) If an individual voluntarily disenrolls from the program before discharge or release from active duty, VA will refund the individual's unused contributions:
    - (i) On the date of the participant's discharge or release from active duty; or
    - (ii) Within 60 days of VA's receipt of notice of the individual's discharge or disenrollment; or
    - (iii) As soon as possible after VA's receipt of notice indicating that an earlier refund is needed due to hardship or for other good reasons.
  - (2) If an individual voluntarily disenrolls from the program after discharge or release from active duty under other than dishonorable conditions, his or her contributions shall be refunded within 60 days of receipt by VA of an application for a refund from the individual.
  - (3) If an individual is disenrolled because he or she is discharged or released from active duty under dishonorable conditions, the individual's contributions remaining in the fund shall be refunded:
    - (i) On the date of the individual's discharge or release from active duty; or
    - (ii) Within 60 days of receipt of notice by the Department of Veterans Affairs of the individual's discharge or release, whichever is the later.
  - (4) If an individual is disenrolled because he or she has not utilized all of his or her entitlement to benefits within the 10-year delimiting period, the individual's contributions remaining in the fund shall be refunded.
    - (i) The Department of Veterans Affairs shall notify the individual that the delimiting period has expired and shall state the amount of unused contributions.
    - (ii) The Department of Veterans Affairs shall make the refund only if the individual requests it.
    - (iii) If VA does not receive a request within 1 year from the date that the individual is notified of his or her entitlement to a refund, VA will presume that the individual's whereabouts is unknown. The funds on deposit for that individual will be transferred in accordance with the provisions of [section 1322(a)](/cfr/38/1322.md?p=a), [Title 31](/cfr/31.md), United States Code.

# §21.5065. Refunds without disenrollment.

- (a) **Refunds made without disenrollment following a discharge or release under dishonorable conditions—**
  - (1) **A discharge or release under dishonorable conditions may result in a partial refund of contributions.** If an individual who would have been eligible, but for the fact of his or her reenlistment, for the award of a discharge or release under conditions other than dishonorable at the time he or she completed an obligated period of service, later receives a discharge or release under dishonorable conditions, the Department of Veterans Affairs may refund a portion of his or her contribution.
  - (2) **Amount of refund.** The Department of Veterans Affairs shall refund to the individual all of his or her remaining contributions made to the fund after the individual completed the obligated period of service.
  - (3) **Date of refund.** The Department of Veterans Affairs shall refund all monies due the individual:
    - (i) On the date of the individual's discharge or release from active duty; or
    - (ii) Within 60 days of receipt by the Department of Veterans Affairs of notice of the individual's discharge or release, whichever is later.
- (b) **Refunds made without disenrollment following a short period of active duty.**
  - (1) An individual who has contributed to the fund during more than one period of active duty may be required to receive a refund of those contributions made during the most recent period of active duty. When an individual who meets all the criteria in [paragraph (b)(2)](#b-2) of this section is discharged, the Department of Veterans Affairs will refund all contributions he or she made during the most recent period of active duty unless the individual meets one or more of the criteria stated in either paragraph [(b)(4)](#b-4) or [(5)](#b-5) of this section. If he or she meets one of those criteria, the contributions will not be refunded unless the individual voluntarily disenrolls.
  - (2) Unless a compulsory refund is prohibited by paragraph [(b)(4)](#b-4) or [(5)](#b-5) of this section, the Department of Veterans Affairs will refund all contributions made by an individual during the most recent period of active duty when the individual:
    - (i) Completed at least one period of active duty before the most recent one during which he or she established entitlement to Post-Vietnam Era Veterans' Educational Assistance;
    - (ii) Reentered on his or her most recent period of active duty after October 16, 1981;
    - (iii) Contributed to the fund during his or her most recent period of active duty; and
    - (iv) **Is discharged.**
  - (3) The circumstances which prohibit an automatic refund of monies contributed during the individual's most recent period of active duty do not relate only to the most recent period of active duty which began after October 16, 1981, but also the individual's prior periods of active duty regardless of whether they began before, after or on October 16, 1981.
  - (4) Meeting one or more of the following criteria concerning periods of active duty before the most recent one will be sufficient to prohibit a compulsory refund of contributions made during the most recent period of active duty. The individual:
    - (i) Before the most recent period of active duty began, completed at least one continuous period of active duty of at least 24 months, or
    - (ii) Was discharged or released under [10 U.S.C. 1171](/usc/10/1171.md) (early-out discharge) from any period of active duty before the most recent one.
  - (5) Meeting one or more of the following criteria concerning the most recent period of active duty will be sufficient to prohibit a compulsory refund of contributions made during the most recent period of active duty. The individual:
    - (i) For the most recent period of active duty completes 24 months of continuous active duty, or the full period for which the individual was called or ordered to active duty, whichever is shorter; or
    - (ii) Is discharged or released from the most recent period of active duty under [10 U.S.C. 1171](/usc/10/1171.md) (early-out discharge) or 1173 (hardship discharge); or
    - (iii) Is discharged or released from the most recent period of active duty for a disability incurred or aggravated in line of duty; or
    - (iv) Has a service-connected disability which give him or her basic entitlement to disability compensation as described in [§ 3.4(b)](/cfr/38/3.4.md?p=b) of this chapter.
  - (6) In computing time served for the purpose of this paragraph, the individual is not entitled for credit for service as specified in [§ 3.15](/cfr/38/3.15.md) of this chapter. However, those periods will be included in determining if the service was continuous.
  - (7) The Department of Veterans Affairs shall refund all monies due the individual:
    - (i) On the date of the individual's discharge or release from active duty; or
    - (ii) Within 60 days of receipt of notice by the Department of Veterans Affairs of the individual's discharge or release, whichever is later.
- (c) **Refunds following an election under § 21.5040(b).** If a veteran described in [§ 21.5040(h)](/cfr/38/21.5040.md?p=h) makes an election to have a period of service credited toward his or her eligibility and entitlement under 10 U.S.C. Chapter 1606, he or she will be required to receive a refund of any contributions he or she made to the fund during that period of service.

# §21.5066. Suspension of participation.


An individual may suspend participation in the program without disenrolling. If the individual suspends participation, he or she may resume participation at any time thereafter while on active duty.

- (a) An individual may suspend participation any time after 12 months of participation.
- (b) An individual who has participated for less than 12 consecutive months may not suspend unless the Secretary of Defense determines that the reason for the suspension is due to a personal hardship.

# §21.5067. Death of participant.

- (a) **Disposition of unused contributions.** If an individual dies, the Department of Veterans Affairs shall pay the amount of his or her unused contributions to the fund to the living person or persons in the order listed in this paragraph.
  - (1) The beneficiary or beneficiaries designated by the individual under the individual's Servicemen's Group Life Insurance policy;
  - (2) The surviving spouse of the individual;
  - (3) The surviving child or children of the individual, in equal shares;
  - (4) **The surviving parent or parents of the individual in equal shares.**
- (b) **Payments to the individual's estate.** If none of the persons listed in [paragraph (a)](#a) of this section is living, the Department of Veterans Affairs shall pay the amount of the individual's unused contributions to the fund to the individual's estate.
- (c) **Payments of accrued benefits.** Educational assistance remaining due and unpaid at the date of the veteran's death is payable under the provisions of [§ 3.1000](/cfr/38/3.1000.md) of this chapter. For this purpose accrued benefits include the portion of the benefit represented by the individual's contribution as well as the portion included by the Department of Veterans Affairs and the Department of Defense.